Minerals This Week...

Tin export has been halted due to falling prices on London Metal's Exchange. Bear in mind all metals prices has fell significantly in this week following weaker Dollar on debt issues.  Well, looking on its trend, I believe the price will go back to normal in mid of this month or at least in the end of October. Stories from coal, nickel, and aluminum wrap up our week.

COAL

Standard & Poors: The rating service company says Indonesian coal mining sector will likely continue to perform well over the next two to three years, building on its significant progress in harnessing the nation's rich coal deposits. S&P credit analyst Xavier Jean said increasing capital spending and the potential for more aggressive shareholder-friendly initiatives among Indonesian coal producers could also slow the current improvement in these companies' credit profiles.

Coal Tax: Indonesian Coal Mining Association (APBI) stated the government shall re-impose a duty on coal exports, classifying it as a good that has a negative impact instead of charging the commodity with excise, in hopes of boosting state revenue as well as securing domestic needs.

Finance minister Agus Martowardojo previously has set coal as one of 15 products that should be levied. Indonesia’s excise law says the government can impose excise, or a specific tax, on goods that have negative impact to humans or the environment. (The Jakarta Globe)

India: Indian power projects that had planned to get coal from Indonesia are yet to find a solution to the new law there that increased their costs and upset their viability calculations, even as the regulation that did all this took effect on Monday. The new regulation says coal sold from the country is to be indexed to the international price and revised annually. (Business Standard)

Thiess: Thiess Group has won a $US500 million ($A513 million) three-year contract extension to further develop and operate two coal mines in East Kalimantan. The new contract between PT Thiess Contractors Indonesia and PT Bayan Resources TbK covering the Teguh Sinar Abadi and Firman Ketaun Perkasa coal mines in East Kalimantan will start on January 2012.

COPPER & GOLD

Freeport: Freeport’s Workers in Grasberg mine will continue to rally after failing to agree on wage increase in government-brokered talks. The traditional land-owners of Grasberg mine supported the workers action and urged Freeport to listen to what the workers demand. Otherwise, the landowners threat they will close the mine immediately.

Meanwhile, Germany-based ThyssenKrupp Fördertechnik is going to supply five gyratory crushers for the Freeport’s Grasberg Gold Mine at the Puncak Jaya, Papua for over the next few years, the largest order in ThyssenKrupp’s history.

NICKEL

International Nickel Indonesia (INCO): The largest nickel miner in Indonesia decided at its extraordinary shareholders meeting on Tuesday to change its name into PT Vale Indonesia. The extraordinary shareholders meeting also agreed on the appointment of the vice president of Inco’s board of commissioners, Nicolaas D. Kanter, as the new managing director of the company, filling the vacant position left by Clayton Allen Wenas, who had resigned. The meeting also appointed Michael O’Sullivan as the new project director and Josimar Pires as the new operations director. 

Glencore:

Glencore International AG is forming a $2 million Hong Kong-based joint venture company with local mining firms NiHAO Mineral Resources International Inc. and AGP Industrial Corporation. The joint venture company may also venture into mining projects in Indonesia and other Asian countries. If they venture outside the Philippines, the three firms may create a new joint venture entity.

TIN: Indonesian Tin Industry Association says smelters in Indonesia's main tin producing region of Bangka island have halted all tin ingot exports due to falling global prices, and will meet later on Monday to decide the length of the ban. The meeting had been arranged with the Bangka regional governor Eko Maulana Ali, and smelter owners may re-start if prices returned to between $22,000-$24,000 a tonne range.

Meanwhile, tin on the London Metal Exchange jumped 5.5 percent to $21,450 on Indonesia’s plan to ban exports and on hopes of more bailout measures for banks in Europe. The price of the metal rose 2.5 percent combined on Monday and Friday, while other base metals fell.  Indonesia is expected to produce up to 100,000 tons of tin ore in 2011, versus around 96,000 tons last year, according the International Tin Research Institute. Indonesia exported 67,989.84 tons in the first eight months this year.

ALUMINUM:

Nalco: the Indian company says it is looking to rope in one or two strategic investors for its proposed aluminum smelter plant in Indonesia. The aluminum major will form a fully owned subsidiary for its Indonesian project and later hive off its stake to interested firms while retaining the majority stake. Once the project reaches the execution stage, Nalco plans to list the entity at the stock exchanges in Jakarta, Hong Kong and Singapore. Presently, Antam has evinced interest to pick up 15-20% stake in Nalco’s proposed smelter project, but they are looking to bring in one or two more strategic investors.